The risk-sensitive Australian dollar weakens amid a cautious mood. The euro’s rally has gained impetus after it cleared the critical resistance at 1.5940 on the daily timeframe.
Sentiment favors the upside and the latest pullback could be a reaction to the RSI’s overbought situation.
The single currency is looking for support above 1.5800. A rebound above the intermediate resistance at 1.5900 would confirm that buyers are in control and may attract followers.
Then a bullish breakout above 1.5980 may extend the rally.
